Texas Gov. Abbott orders child care system investigation after Minnesota scandal

Texas Gov. Greg Abbott speaks during a press conference at Uvalde High School on May 25, 2022 in Uvalde, Texas.  (Jordan Vonderhaar/Getty Images)

Texas Gov. Greg Abbott is directing state commissions related to child care services to uncover potential funding fraud like the kind sweeping recent news out of Minnesota. 

Abbott's order follows Minnesota Gov. Tim Walz's decision not to seek reelection, which itself came on the heels of the state's child care system scandal. 

Texas child care investigation

Abbott sent a letter Monday to the Texas commissions on workforce and health and human services, directing them to launch investigations into child care funding to find or prevent fraudulent payments. 

The governor noted that the Texas Workforce Commission and the Health and Human Services Commission both already have strong anti-fraud processes in place, which he says show in an improper payment rate of 0.43 percent statewide, compared to Minnesota's rate of 11 percent. That said, Abbott believes new investigations could do more to protect children and taxpayers in Texas. 

The commissions have been directed to submit progress reports by Jan. 30, and final reports on Feb. 27. 

What they're saying:

"Recently, the Trump Administration and independent journalists have uncovered potential systematic fraud in subsidized child care systems in states like Minnesota," said Abbott in his release. "Such fraud will never be tolerated in Texas. Today, I directed Texas state agencies to take proactive steps to prevent, detect, and eliminate misuse of taxpayer funds to protect the integrity of Texas’ Child Care Services Program." 

Greg Abbott, governor of Texas, speaks during a Get Out The Vote campaign event in Beaumont, Texas, U.S., on Thursday, Feb. 17, 2022. Abbott has a 10-point lead over Democrat Beto O'Rourke ahead of November's general election, according to a Universi

Minnesota fraud

Big picture view:

A recent federal audit uncovered deficiencies in Minnesota's child care assistance program related to attendance tracking.

The audit, conducted by the Department of Health and Human Services' Office of Inspector General, was published in May.

It revealed that Minnesota did not comply with federal and state attendance documentation requirements for some payments made under its taxpayer-funded Child Care Assistance Program.

Auditors reviewed data from 2023, examining 200 randomly selected assistance payments, and found attendance-related issues in 38 of them.

The federal government estimated that 11 percent of all payments likely had some flaw, potentially impacting $231.4 million in child care claims across more than 1,150 providers.

Minnesota Governor Tim Walz arrives to speak at a press conference regarding new gun legislation at City Hall on August 1, 2024 in Bloomington, Minnesota. 

Tim Walz ends campaign

Dig deeper:

Following that news, Walz announced he would not seek reelection for a third term as governor. 

Walz, 61, in September said he'd be running for reelection in 2026 but on Monday he announced he was dropping out of the race, saying he can't give a political campaign his all after what he described as an "extraordinarily difficult year for our state." 

Featured

Tim Walz ends reelection campaign for governor of Minnesota

Minnesota Gov. Tim Walz will not seek reelection for a third term as governor, saying he can't give a political campaign his all after what he described as an "extraordinarily difficult year for our state."

Walz's announcement comes as he faces growing national criticism from President Donald Trump, among others, for his handling of the uncovered fraud. Republican opponents have accused Walz of being slow to respond to the scandal.

While not intending to run again, Walz has maintained that he will not be leaving office before his current term expires. 

The Source: Information in this article comes from Gov. Greg Abbott's office and previous reporting by FOX Local stations. 

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